Investing.com - Intel (NASDAQ:INTC) received a boost this week, with the semiconductor company being awarded billions of dollars in grants and loans from the Biden administration as part of its effort to supercharge domestic chip output.
The U.S. government said earlier this week that it has signed a preliminary agreement with Intel for $8.5 billion in grants and up to $11 billion in loans for plants and upgrades to manufacturing sites in Arizona, Ohio, Oregon and New Mexico.
At 10:55 ET (14:55 GMT), Intel shares rose just over 2% to $43.12, having fallen just over 14% year-to-date.
This news prompted Global Equities Research to lift its 12-month price target on the company to $100 from $65, saying that even this target could be conservative.
Intel is the only company to fabricate the next generation of AI processors, the research house said, in a note, with its 18A, 14A and then 10A process technologies.
There is no AI industry without these technologies, it added, and thus sees plenty of upside for Intel.